1. Lehman Brothers
Energy & Power Conference
Robert W. Best
Chairman, President & CEO
September 2, 2008
Forward Looking Statements
The matters discussed or incorporated by reference in this presentation may contain
“forward-looking statements” within the meaning of Section 27A of the Securities Act of
1933 and Section 21E of the Securities Exchange Act of 1934. All statements other than
statements of historical fact included in this presentation are forward-looking statements
made in good faith by the company and are intended to qualify for the safe harbor from
liability established by the Private Securities Litigation Reform Act of 1995. When used
in this presentation or in any of our other documents or oral presentations, the words
“anticipate,” “believe,” “estimate,” “expect,” “forecast,” “goal,” “intend,” “objective,” “plan,”
“projection,” “seek,” “strategy” or similar words are intended to identify forward-looking
statements. Such forward-looking statements are subject to risks and uncertainties that
could cause actual results to differ materially from those discussed in this presentation,
including the risks relating to regulatory trends and decisions, our ability to continue to
access the capital markets, and the other factors discussed in our filings with the
Securities and Exchange Commission. These factors include the risks and uncertainties
discussed in our Annual Report on Form 10-K for the fiscal year ended September 30,
2007 and in our Quarterly Report on Form 10-Q for the three and nine months ended
June 30, 2008. Although we believe these forward-looking statements to be reasonable,
there can be no assurance that they will approximate actual experience or that the
expectations derived from them will be realized. We undertake no obligation to update or
revise any forward-looking statements, whether as a result of new information, future
events or otherwise.
Further, we will only update earnings guidance through our quarterly and annual
earnings releases. All estimated financial metrics for fiscal year 2008 and beyond that
appear in this presentation are current as of the date noted on each relevant slide. 2

2. Overview
The Nation’s Largest Pure Gas Distribution Company
Regulated gas distribution operates in 12 states (gold)
Nonregulated operates primarily in the Midwest & Southeast (gray)
3
Overview
Diluted Earnings Per Share Contribution Shows Steady Growth
$1.95-$2.05
6.1%
CAGR $1.92
$2.10 $1.82
$1.72
$1.58 0.42-0.46
$1.80
0.69 Nonregulated
0.34
$1.50
0.84 Operations
0.42
$1.20 Regulated
Operations
$0.90
1.53-1.59
1.38
1.23
$0.60 1.16
0.98
$0.30
$0.00
2004 2005 2006 2007 2008E
4
As of August 5, 2008

3. Overview
Annual Dividend Remains Steady
$1.30E
$1.40
$1.20
$1.00
$0.80
$0.60
$0.40
$0.20
$0.00
'8
'8
'8
'8
'8
'8
'9
'9
'9
'9
'9
'9
'9
'9
'9
'9
'0
'0
'0
'0
'0
'0
'0
'0
'0
4
5
6
7
8
9
0
1
2
3
4
5
6
7
8
9
0
1
2
3
4
5
6
7
8
Note: Amounts are adjusted for mergers and acquisitions. For fiscal 2008, $1.30 is the indicated annual dividend.
5
Overview
Financial Metrics Continue to Improve
2
1
Return on Invested Capital (ROIC) Times Interest Earned Ratios
3.5
18.0%
16.4%
3.00
3.05
15.5%
16.0% 3.0
2.75
2.75
14.5% 14.4%
2.59
2.55 2.55
14.0% 2.5
13.1%
12.7%
12.0%
2.0
10.0%
1.5
2003 2004 2005 2006 2007 5 Yr Avg
2002 2003 2004 2005 2006 2007 2008E
3
Weighted Average Cost of Debt Debt Capitalization Ratio
8.0%
65
7.4%
60.9%
6.9% 59.3%
7.0% 60
6.4%
6.1% 6.1%
6.0% 5.9%
55
6.0% 53.7%
53.6%
5.6% 51.5%
50
5.0%
45
43.3%
4.0%
40
2003 2004 2005 2006 2007 Jun-08
3.0%
2001 2002 2003 2004 2005 2006 2007 2008E
(1) ROIC - Return on invested capital is calculated using the following GAAP financial measures: Income before interest expense and income taxes plus common stock dividends paid, divided by the
average of the year’s beginning and ending long-term debt plus common equity. This measure is used to more precisely evaluate operational performance and management effectiveness.
(2) The times interest earned ratio measures the ability to satisfy annual interest costs.
6
(1) (2) (3) As of December 2007

4. Overview
Investment Grade Credit Ratings Allow Financial Flexibility
Moody’s Rating
Senior Unsecured Debt: Baa3
Commercial Paper: P-3
Outlook: stable
Standard & Poor’s
Senior Unsecured Debt: BBB
Commercial Paper: A-2
Outlook: positive
Fitch
Senior Unsecured Debt: BBB+
Commercial Paper: F-2
Outlook: stable
7
Regulated Operations
Atmos Energy Corporation
Atmos Energy Corporation
(Regulated Operations)
(Regulated Operations) Atmos Energy Holdings, Inc.
Atmos Energy Holdings, Inc.
Gas Distribution Divisions
Gas Distribution Divisions
Transmission & Storage (Nonregulated Operations)
Transmission & Storage (Nonregulated Operations)
Colorado-Kansas
Colorado-Kansas
Atmos Energy Marketing
Atmos Energy Marketing
Kentucky/Mid-States
Kentucky/Mid-States • • Marketing
Marketing
• • Asset Optimization
Asset Optimization
Louisiana
Louisiana
Atmos Pipeline, Storage
Atmos Pipeline, Storage
Mid-Tex
Mid-Tex and Other
and Other
• • Non-Texas Assets (Storage & Pipeline)
Non-Texas Assets (Storage & Pipeline)
Mississippi
Mississippi • • Midstream
Midstream
• • Other
Other
West Texas
West Texas
Atmos Pipeline -Texas
Atmos Pipeline -Texas
8

5. Regulated Natural Gas Distribution
Profit Drivers in the Distribution Business
Regulated Gas Distribution Operates in 12 States (gold)
Customer and meter
growth
Growing rate base
Managing costs
Executing our rate
strategy
9
Regulated Natural Gas Distribution
Successfully Executing on the Rate Strategy
GRIP/
Purchased Accelerated Decoupling/ Gas Cost
Number of Percentage Gas Cost Capital Rate Bad Debt
Customers of Total Adjustments WNA Recovery Stabilization Recovery
4,7
6
1,800,000 Partial
Texas 57% Partial
Louisiana 350,000 11%
Mississippi 270,000 8%
Remaining
1 2 3 5
Jurisdictions 770,000 24% Partial
Partial Partial
Partial means applicable within certain jurisdictions within the category.
Excludes Colorado, Iowa and Illinois for a total of 137,657 customers.
1
Includes Missouri, Kansas and Georgia for a total of 258,102 customers.
2
3 Includes Missouri for a total of 59,672 customers.
4 Includes Amarillo for a total of 69,772 customers.
5 Includes Kansas and Virginia for a total of 151,545 customers.
6 Includes Mid-Tex Division customers residing in cities covered by settlement agreements.
7 Includes Mid-Tex Division for a total of 1,500,000 customers. 10

6. Mid-Tex Division 2008 Rate Outcome Summary
Systemwide
Settlement RRC Order
Increase in Revenues
(438 of 439 Cities) (City of Dallas & Environs)
100%
~80% ~20%
Effective 4/1/08 $10 Million Rate Increase __
__ $19.6 Million Rate Increase Effective 7/8/08
Pending;
$33.5 Million RRM Filing __
Effective 10/1/08
Included in RRM filing $10.3 Million GRIP Filing Recovery Effective 11/08 (est.)
Effective 10/1/08 Gas Cost Recovery of Bad Debt Effective 7/1/08
Effective 10/1/08 Capital Structure 52% Debt; 48% Equity Effective 7/1/08
Effective 10/1/08 $1 Million Conservation Program Effective 10/1/08
9.6% Authorized Return on Equity (ROE) 10.0%
11
Regulated Operations
Approved Annual Rate Increases in the Regulated Operations
$60.0 $50 - $60
$50.0
$40.1
($ Millions)
$39.0
$40.0 2.9
1.4
$30.0
25.6
$18.6
34.3
$20.0 $16.2
2.8
5.7
$10.0 $6.3
15.8
11.6
1.8
10.5
4.5 3.3
$0.0
2003 2004 2005 2006 2007 2008-2012E
Annual Mechanism GRIP General Rate Case Aggregate 12
As of August 5, 2008

7. Regulated Transmission and Storage
Strategically Positioned Atmos Pipeline –Texas
Favorably positioned; spans
Texas gas supply basins and
growing consumer market
Pipeline Operations
• Connects to major market hubs-
Waha, Katy and Carthage
• 6,300 miles of intrastate pipeline
• Estimated transportation volume of
780 Bcf in fiscal 2008
• Current average volume of
approximately 2.0 Bcf/d
• Demonstrated peak day deliveries
of 3.5 Bcf/d
Five Storage Facilities
• One salt cavern, four reservoirs
West Texas Division • 39 Bcf working gas capacity
• 1.2 Bcf/d maximum withdrawal
Mid-Tex Division
• 270 MMcf/d maximum injection
Atmos Pipeline-Texas
Atmos Energy Headquarters
13
Regulated Transmission and Storage
Atmos Pipeline – Texas Growth Drivers
775-785
699
750
Growth Drivers
581
Transportation Volumes
555
600
Pursue capacity and
587-590
505
compression growth
450
(Bcf)
411
opportunities
374
300
Increased through-system
150 1188-195
194
volumes primarily from
181 170
producers in Barnett Shale
0
2005 2006 2007 2008E
Margin expansion through
Mid-Tex Division Third Party
ancillary services such as
188-194
200
parking and lending, balancing,
163
Margin Composition
175
blending, and compression
141
138
150 93-97
($millions)
Gas price volatility increasing
78
125
64
60
basis differentials between
100
Texas hubs
75 95-97
85
50 78 77
25
0
2005 2006 2007 2008E
Tariff Based Market Based 14
As of August 5, 2008

8. Regulated Transmission and Storage
Barnett
Shale
y
alle
on V
Cott
sier
Bos s
d
San
Permian
Location of gas
supply basins
15
Nonregulated Operations
Organization Structure
Atmos Energy Corporation
Atmos Energy Corporation
(Regulated Operations)
(Regulated Operations) Atmos Energy Holdings, Inc.
Atmos Energy Holdings, Inc.
Gas Distribution Divisions
Gas Distribution Divisions
Transmission & Storage (Nonregulated Operations)
Transmission & Storage (Nonregulated Operations)
Colorado-Kansas
Colorado-Kansas
Atmos Energy Marketing
Atmos Energy Marketing
Kentucky/Mid-States
Kentucky/Mid-States • • Marketing
Marketing
• • Asset Optimization
Asset Optimization
Louisiana
Louisiana
Atmos Pipeline, Storage
Atmos Pipeline, Storage
Mid-Tex and Other
Mid-Tex and Other
• Non-Texas Assets (Storage & Pipeline)
• Non-Texas Assets (Storage & Pipeline)
Mississippi • • Midstream
Mississippi Midstream
• • Other
Other
West Texas
West Texas
Atmos Pipeline -Texas
Atmos Pipeline -Texas
16

9. Nonregulated Operations
Atmos Energy Marketing Customers (gray states)
About 1,100 customers
Target market is Atmos
Energy’s natural gas
distribution footprint
Focus on areas where we
manage, lease or own storage
and transportation assets
Regional offices allow for
more direct customer access
17
Nonregulated Operations
Atmos Energy Marketing – Margin Composition
2008E
Impacted by customer volume demand
Delivered Gas Sales prices are:
Delivered Gas
• Cost plus profit margin $65 - $70 Million
(Bundled gas deliveries & • Cost plus demand charges
(Bundled gas deliveries &
peaking sales)
peaking sales)
Margins: More predictable
Impacted by gas price spread values
in the market (arbitrage opportunity)
Physical storage capabilities
Asset Optimization $10 - $15 Million
Asset Optimization Available storage and transport
capacity
(Storage & transportation
(Storage & transportation 7.8 Bcf proprietary contracted capacity
management)
management) 27 Bcf customer-owned / AEM- managed
storage
Margins: More variable
=
Total margins reflect:
$75 - $85 Million
Stability from delivered gas margins
Total AEM
Total AEM Upside from optimizing our storage
Margins
Margins and transportation assets to capture
arbitrage value
Margins: Stable with potential upside
18
As of August 5, 2008

10. Nonregulated Operations
Delivered Gas Volumes Continue Growth Trend
450-485
Key Growth Drivers
500
424
Gross Sales Volumes
400 337
Retain existing customers
273
265
300
Saturate existing markets
BCF
Expand into targeted growth
200
markets (Texas, Alabama, etc.)
100
Expand asset management
0
business
2004 2005 2006 2007 2008E
Unit margin expansion from
0.31
premium value-added services
0.30 0.25
Delivered Gas Unit Margins
provided to customers
0.23
Access to storage assets
(cents per Mcf)
0.20 0.14-0.15
0.15
Gas price volatility
0.10
0.00
2004 2005 2006 2007 2008E
19
As of August 5, 2008
Nonregulated Operations
Nonregulated Atmos Energy Marketing
Delivered Gas and Asset Optimization Margins
150.0 Delivered Gas Margins have remained
130.6
fairly constant at about $60 million, with
130.0
the exception of Fiscal 2006 due to effects
17.2 104.3
of Hurricane Katrina
110.0
26.2 Asset Optimization Margins remained
62.0
18.4
($ millions)
75.0-85.0 fairly constant between $25 million - $30
90.0
million annually until fiscal 2008 when the
10.0-15.0
28.0 28.8 effects of dampened market volatility can
70.0
be seen
50.0
Fiscal 2008 marketing segment margins
87.2
are expected to be between $75 million
65.0-70.0
60.0 57.1
30.0
and $85 million, excluding any mark-to-
market impact
10.0
Mark-to-market accounting impact is
recognized in Unrealized Margins. An
(10.0) (26.0)
example of the accounting can be found
in the appendix to this presentation
(30.0)
2005 2006 2007 2008E
Delivered Gas Asset Optimization Unrealized Margins
20
As of August 5, 2008

11. Nonregulated Operations
Ft. Necessity Gas Storage Project in Louisiana
Initial project includes
development of three 5 Bcf
Salt Storage Project
caverns with six-turn
Franklin Parish, LA
injection and withdrawal
capabilities
Storage facility adjacent to
large interstate pipelines
Pending FERC approval,
first cavern projected to be
operational in 2011; the
other two caverns
operational by 2012 and
2014
Depending on market
demand, four additional
storage caverns could Legend of Nearby Pipelines
potentially be developed Regency ANR
LIG CGT
Successful non-binding TGT TGP
Fort Necessity
open season completed in Salt Dome
TLG
July 2008
21
Financial Review
Consolidated Earnings Guidance – Fiscal 2008E
Atmos Energy continues to expect earnings to be
in range of $1.95 - $2.05 per diluted share for the
2008 fiscal year
Assumptions include:
Contribution from natural gas marketing segment
reflecting significantly less volatility in gas price spreads
o Total expected gross margin contribution from the marketing
segment in the range of $75 million to $85 million, excluding
any material mark-to-market impact at September 30, 2008
Continued successful execution of rate strategy and
collection efforts
Bad debt expense of no more than $15 million
Average annual short-term interest rate of 6.5%
Note: Changes in these events or other circumstances that the company cannot currently anticipate could
materially impact earnings, and could result in earnings for fiscal 2008 significantly above or below this outlook.
22
As of August 5, 2008

12. Financial Review
Projected Net Income by Segment
($ millions, except EPS)
2008E
2005 2006 2007
$ 95 - 99
$ 53
$ 81 $ 73
Natural Gas Distribution
43 - 44
27
28 34
Regulated Trans & Storage
27 - 30
58
23 46
Natural Gas Marketing
11 - 12
10
4 15
Pipeline, Storage & Other
176 - 185
148
136 168
Total
90.1
81.4
79.0 87.7
Avg. Diluted Shares
$1.95 - $2.05
$ 1.82
$ 1.72 $ 1.92
Earnings Per Share
23
As of August 5, 2008
Financial Review
Capital Expenditures
($ millions)
Regulated Regulated Nonregulated
Gas Distribution Transmission & Storage
$365-$371
$327.4
$100
$400 $19-21
$25
$71-73
$350 $59.3
$20
$75
$300 285- 4-5
$250 288 $15
228.3
$50
$200 $5.7
61-62
57.2 $10
$150
15-16
1.1
$25
$100 $5
4.6
$50 99.1 80-83 10-11
2.1 $0
$0
$0
2007 2008E
2007 2008E
2007 2008E
Maintenance Capital
Growth Capital
Consolidated fiscal 2008 CAPEX projection is $455-$465 million
24
As of August 5, 2008

13. Financial Review
Compelling Valuation and Total Return Proposition
Forward P/E Estimates 5 Year Expected Total Return
16.0 14.2%
15.0
14.9x
15.0 2.1
14.3x
12.0 9.6%
9.0%
14.0
13.1x
9.0
13.0 12.1
4.9
3.9
6.0
12.0
5.1 4.7
3.0
11.0 Peer Group S&P 500
Atmos
Atmos
S&P 500 Peer Group Avg. Energy
Energy
Avg.
5 year growth rate dividend yield
Source: Bloomberg @ 8/26/08
Peer group averages exclude Atmos
Companies in the peer group include AGL Resources, Laclede, New Jersey Resources, Nisource, Northwest Natural Gas, Oneok, Piedmont
Natural Gas, Southwest Gas and WGL Holdings.
25
Summary
Company Profile
The nation’s largest pure-gas distribution company
Solid financial foundation
Track record of creating shareholder value
• Consistent earnings growth
• 24 consecutive years of increasing dividends
Focused strategy over time
• Grow through prudent acquisitions
• Maximize core regulated earnings capability
• Complement core regulated businesses through select
nonregulated operations
26

14. Slide
Appendix
27
Regulated Operations
Recent Regulatory Activity Aids Margin Growth
Mid-Tex – rate case completed
• Settlement agreement reached with all major parties in January and February 2008, except City of
Dallas and environs customers
• Final order issued by the Texas Railroad Commission in June 2008 applicable to the City of Dallas
and environs
• Details included on slides located in the presentation appendix
Louisiana – annual rate stabilization filings complete
• Approved $1.7 million increase in June 2008 for LGS jurisdiction (about 265,000 customers) effective
immediately
• Approved $2.1 million increase for Trans La jurisdiction (about 80,000 customers) effective April, 2008
Kansas – rate case settled
• Filed for $5 million in September 2007
• Reached $2.1 million “black box” settlement with staff, effective May 2008 (about 124,000 customers)
Georgia – pending rate case
• Filed for over $6 million in March 2008, decision expected September 2008 (about 76,000 customers)
• Forward-looking filing with test year ending March 30, 2009
Atmos Pipeline - Texas – 2007 GRIP filing for revenue increase of approximately $7.0 million
implemented on April 15th
Mid-Tex Division – 2007 GRIP filing on a system-wide basis filed in May 2008 of $10.3
million; anticipate implementation November 2008 of approximately $2.0 million annually for
the customers in the City of Dallas and unincorporated areas
28

15. Regulated Natural Gas Distribution
Rate Case Settlement in Mid-Tex Division
Settlement agreement reached with 438 of 439 cities served in Mid-Tex
Division, representing approximately 80% of Mid-Tex customers
Includes initial increase of $10 million on a systemwide basis, implemented in
the consumption charge and effective April 1, 2008
Implements Rate Review Mechanism (RRM) effective for a three-year trial
period
Reflects annual changes in cost of service and rate base, replaces GRIP filings for
the Settlement Cities
Lowers base customer charge to $7.00 for residential customers, effective
October 1, 2008
Two basic components of this mechanism:
o Prospective component adjusts rates for the next year, including known and measurable
changes in O&M; and
o True-up component adjusts the prior year, up or down, to the authorized ROE
April 14, 2008, made initial RRM filing with the settling cities for $33.5 million on a
systemwide basis, with October 1st implementation
Future RRM filings by March 1st, to be effective July 15th
Authorized ROE of 9.6%; capital structure of 52% debt / 48% equity
Establishes a conservation program effective October 1, 2008
Funded annually with $1 million contributions each by the company and customers 29
Regulated Natural Gas Distribution
Rate Case Decision in Mid-Tex Division
June 24, 2008, Railroad Commission of Texas issued final order
applicable to approximately 20% of customers
Includes City of Dallas and environs customers
The remaining 80% of Mid-Tex division customers (438 of 439 cities) were
entities who reached earlier settlement; therefore not affected by this order
Systemwide annual revenue increase of about $19.6 million; July 8, 2008
implementation; increased residential customer charge to $14
Capital structure of 52% debt / 48% equity
Authorized ROE of 10.0%; Allowed Rate of Return of 7.98%
Systemwide Rate Base of $1.128 billion; Systemwide Authorized Net
Plant of $1.244 billion
Recovery of bad debt gas cost through a Gas Cost Recovery (GCR)
mechanism beginning October 1, 2008
Establishes a conservation & energy efficiency program
Effective October 1, 2008; funded annually with $1 million contributions
each by the company and customers
Test year ended June 30, 2007 30

16. Consolidated Financial Results – Fiscal 2008 3Q
Net Income by Segment
Key Drivers
($ in millions)
)
Rate increases, primarily
$(6.6)
51% in Texas
$(13.4)
$20.0 Increase in transportation
volumes and fees at the
$15.0 1.8 regulated pipeline
$10.0 1.8
Decrease in nonregulated
$5.0 10.3 natural gas marketing
6.1
$0.0 margins, primarily due to
decrease in storage and
($5.0) (12.4)
trading activities
(15.7)
($10.0)
Increase in O&M
($15.0) (6.3) expenses, primarily due to
(5.6)
($20.0) higher administrative
costs
3Q 2007 3Q 2008
Natural gas distribution Regulated transm ission & storage
Natural gas m arketing Pipeline, storage & other
31
Consolidated Financial Results – Fiscal YTD
Net Income by Segment
($ in millions)
)
Key Drivers
Rate increases, primarily in
$178.7
2% Texas
$250.0
$174.4
Decrease in nonregulated
$200.0 natural gas marketing
10.4
12.5 margins, primarily due to
19.6 decrease in storage and
$150.0 40.4 trading activities
35.3
29.1
$100.0 Increase in transportation
volumes and fees at the
113.4 regulated pipeline
$50.0 92.4
Increase in O&M expenses,
$0.0 primarily due to higher
YTD 2007 YTD 2008 administrative costs
Natural gas distribution Regulated transmission & storage
Natural gas marketing Pipeline, storage & other
32

17. Consolidated Financial Results – Fiscal YTD
Capital Expenditures
Regulated Regulated Nonregulated
Gas Distribution Transmission & Storage
$266.8
$300 $50 $8
$40.4
$37.1
$222.5 $5.7
$250
$40
$6 $3.4
$200
$30 2.1
208.2
$150 $4
154.6 35.1
$20 0.7
37.1
$100
$2 3.6
$10 2.7
$50
67.9 58.6
5.3
$0
$0 $0
YTD 2007 YTD 2008
YTD 2007 YTD 2008 YTD 2007 YTD 2008
Total Fiscal 2008 YTD Expenditures: $312.9 million
Growth Capital
Total Maintenance Capital: $245.4 million
Total Growth Capital: $ 67.5 million
Maintenance Capital
33
Consolidated Financial Results – Fiscal 2008 3Q
Natural Gas Marketing Segment
Three Months Ended June 30
Natural Gas Marketing Segment 2008 2007 Change
(In thousands, except physical position)
Delivered gas $11,231 $9,999 $1,232
Asset optimization (37,551) (33,376) (4,175)
Unrealized margin 23,689 22,801 888
($2,631) ($576)
GROSS PROFIT ($2,055)
Net physical position (Bcf) 17.5 21.5 (4.0)
34

18. Consolidated Financial Results – Fiscal YTD
Natural Gas Marketing Segment
Nine Months Ended June 30
Natural Gas Marketing Segment 2008 2007 Change
(In thousands, except physical position)
Delivered gas $55,599 $44,320 $11,279
Asset optimization (10,339) 38,558 (48,897)
Unrealized margin 14,404 2,733 11,671
$59,664 $85,611
GROSS PROFIT ($25,947)
Net physical position (Bcf) 17.5 21.5 (4.0)
35
Nonregulated Operations
Atmos Energy Marketing
Economic Value vs. GAAP Reported Results
We commercially manage our storage assets by capturing arbitrage value through
optimization strategies that create embedded (forward) value in the portfolio. We
financially report the transactions for external reporting purposes in accordance
with generally accepted accounting principles (“GAAP”).
GAAP Reported Value is the period to period net change in fair value of the
portfolio reported in the income statement that results from the process of marking
to market the physical storage volumes and corresponding financial instruments in
an interim period.
Economic Value is the period to period forward margin of our storage portfolio
that results from the process of calculating our weighted average cost of inventory
(WACOG), and our weighted average sales price of our forward financials
(WASP), then multiplying the difference times inventory volumes. This margin will
be realized in cash when the hedged transaction is executed or when financials
are settled and then reset to stay hedged against physical volumes.
• Economic Value represents the “forward” economic margin of the transactions, while GAAP
reported results reflect that portion of our “forward” margin that has been recorded in the income
statement.
• Volatility in earnings includes the impact of the accounting treatment of our storage portfolio in
accordance with GAAP and is reflective of relatively high price volatility of the prompt month, and
the relatively low volatility of the offsetting forward months.
36

19. Nonregulated Operations
Atmos Energy Marketing
Economic Value vs. GAAP Reported Results
Reported GAAP Economic Value*
Reported GAAP
Value (Commercial Value)
Value
- -Physical and Financial
Physical and Financial - Physical and Financial
Positions Positions
Positions
$48.2 MM
$34.3 MM
$34.3 MM
Market Spread
*Potential Gross Profit
$13.9 MM
* There is no assurance that
the economic value or the
potential gross profit will be
fully realized in the future.
37
At June 30, 2008
Nonregulated Operations
Atmos Energy Marketing
Economic Value vs. GAAP Reported Results
Three Months Ended
Physical Economic Value (EV) GAAP Reported Value - MTM Market Spread
($ per mcf)
Period Volume Total Total Total
WASP WACOG EV
Ending (Bcf) ($ in millions) ($ per mcf) ($ in millions) ($ per mcf) ($ in millions)
19.6 8.2196 7.6701 0.5495 (1.2347) 1.7842
3/31/2007 10.8 (24.2) 35.0
21.5 9.5409 7.6238 1.9171 (0.3343) 2.2514
6/30/2007 41.2 (7.2) 48.4
1.9 $ 1.3213 $ (0.0463) $ 1.3676 0.9004 $ 0.4672
2007 Variance $ 30.4 $ 17.0 $ 13.4
20.7 8.6763 8.1555 0.5208 (0.0296) 0.5504
3/31/2008 10.8 (0.6) 11.4
17.5 11.0565 8.3037 2.7528 1.9616 0.7912
6/30/2008 48.2 34.3 13.9
(3.2) $ 2.3802 $ 0.1482 $ 2.2320 1.9912 $ 0.2408
2008 Variance $ 37.4 $ 34.9 $ 2.5
WASP: Weighted average sales price for gas held in storage
WACOG: Weighted average cost of AEM’s gas in storage
EV: “Economic Value” which equals gas sales price (WASP) minus cost of gas (WACOG) on a per unit basis
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20. Nonregulated Operations
Atmos Energy Marketing
Economic Value vs. GAAP Reported Results
Nine Months Ended
Physical Economic Value (EV) GAAP Reported Value - MTM Market Spread
($ per mcf)
Period Volume Total Total Total
WASP WACOG EV
Ending (Bcf) ($ in millions) ($ per mcf) ($ in millions) ($ per mcf) ($ in millions)
14.5 11.9716 7.8329 4.1387 (1.1076) 5.2463
9/30/2006 60.0 (16.0) 76.0
21.5 9.5409 7.6238 1.9171 (0.3343) 2.2514
6/30/2007 41.2 (7.2) 48.4
7.0 $ (2.4307) $ (0.2091) $ (2.2216) $ 0.7733 $ (2.9949) $
2007 Variance (18.8) $ 8.8 (27.6)
12.3 11.1547 7.8297 3.3250 0.8819 2.4431
9/30/2007 40.8 10.8 30.0
17.5 11.0565 8.3037 2.7528 1.9616 0.7912
6/30/2008 48.2 34.3 13.9
5.2 $ (0.0982) $ 0.4740 $ (0.5722) $ 1.0797 $ (1.6519) $
2008 Variance 7.4 $ 23.5 (16.1)
WASP: Weighted average sales price for gas held in storage
WACOG: Weighted average cost of AEM’s gas in storage
EV: “Economic Value” which equals gas sales price (WASP) minus cost of gas (WACOG) on a per unit basis
39